SBA Administrator Kelly Loeffler and U.S. Secretary of Labor Lori Chavez-DeRemer join us on the latest episode of the SBA Update to announce initiatives that strengthen small businesses, expand workforce development, and promote domestic manufacturing.
They highlighted a new memorandum of understanding between the Department of Labor and the SBA, which shares data on workforce needs and small business investment. The agreement helps workers develop skills for advanced manufacturing and an AI-driven economy, while providing small businesses with better access to qualified talent. Chavez-DeRemer called the effort a bridge between workforce training and business needs, stressing that programs must reflect the priorities of local communities.
Economic and manufacturing initiatives
The interview also covers the SBA’s Made in America Manufacturing Tour, which showcases the difficulties small business manufacturers and their workforces encounter. Loeffler notes that nearly all U.S. manufacturers are small businesses, and their experiences help shape policies in Washington.
“[The Department of Labor and SBA] are going to do everything we can not to displace the American worker” - Lori Chavez-DeRemer
SBA initiatives include raising loan limits from $5 million to $10 million and introducing Revolving Credit options, providing manufacturers with working capital for hiring and investment needs. Both officials emphasized the importance of reducing dependence on foreign supply chains, particularly in critical sectors such as defense, food, pharmaceuticals, and aerospace.
Loeffler pointed out record-breaking lending through the SBA, with over 55,000 loans issued this year, supporting approximately 2,000 Main Street businesses weekly. Chavez-DeRemer explained that affordable financing, along with deregulation efforts, helps small businesses hire, invest, and grow while ensuring financial flexibility.
American Family Tax Cut and policy impacts
The discussion also covered the American Family Tax Cut, which delivers stability to small businesses and working families. The law expands child care tax credits and Pell Grants and removes taxes on tips and overtime pay, directly benefiting service industry workers, law enforcement, and manufacturers. Loeffler described the measure as a “working family Main Street tax bill” that gives small businesses the predictability corporate America has long enjoyed.
“I’ve never seen a workforce shrink because of technology. What I’ve seen is technology helping workers do their jobs better, be more efficient, and ultimately create more opportunities.”- Kelly Loeffler
On artificial intelligence, both leaders reassured small business owners and workers that AI serves as a tool to increase efficiency rather than eliminate jobs. They said administration programs focus on training employees to adopt technology while protecting local jobs.
Market outlook
Chavez-DeRemer and Loeffler point to growing optimism among small business owners, especially in manufacturing, where deregulation and investments continue to drive expansion. Expanding apprenticeship programs and workforce initiatives prepare Americans for high-demand, skilled jobs in advanced manufacturing and engineering.
They concluded that the administration’s focus on workforce training, small business financing, and domestic manufacturing strengthens Main Street America while keeping the U.S. competitive in a technology-driven global economy. Both leaders emphasized that these efforts aim to protect jobs, expand opportunity, and help more Americans achieve the American Dream.
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